Yong Tai sees entry of new biggest shareholder

Yong Tai Group Chief Executive Mr Boo Kuang Loon ( third from right ) briefing to Malacca Governor Tun Mohd Khalil Yaakob.( right ) and Malacca Chief Minister Datuk Seri Idris Haron ( centre ) about Impression City which currently in construction will be ready by 2018 prior to the Signing ceremony at Jaya 99 Tower.

KUALA LUMPUR: YONG TAI BHD, which is mulling to sell its fabric manufacturing and dyeing business in order to focus on tourism-related property development, has a new biggest shareholder -- and it is a fabric and clothing trader.

ICAL has sold its entire 34.4% stake in Yong Tai -- which is developing Impression City in Melaka -- over the last two months for RM165mil, or RM1.10 per share.

In a filing with Bursa Malaysia, Yong Tai said ICAL inked a conditional agreement on Tuesday last week to dispose a 24.6% stake in Yong Tai to Co-Prosperity Holdings Ltd’s unit, Full Winning Developments Ltd (FWDL).

The 107 million shares were sold for RM117.7mil, the latest in a series of share disposals.

Following last week’s disposal to FWDL, the group no longer holds any Yong Tai ordinary share, However, it still owns 200 million irredeemable convertible preference shares in the company.

Sino Haijing/ICAL had obtained its 34.4% equity interest in Yong Tai through a special issue in November last year at 80 sen a share, or RM120mil in total.

At the time, the Sino Haijing group had viewed its equity stake as a long-term and strategic investment that would enable the group to generate sustainable and attractive returns for its shareholders.

“However, the group was approached by the purchasers who have provided very attractive offers at the price of RM1.10 for each Yong Tai share. Therefore, the board considers that the disposal provides the company with a good opportunity to realise the investment and enhance the cash flow of the group,” Sino Haijing told the HKEx in a filing.

Sino Haijing said the group expected to realise a gain of about RM44.75mil from the share disposal.